Trade-Ideas LLC identified

Callaway Golf

(

ELY

) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified Callaway Golf as such a stock due to the following factors:

  • ELY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.0 million.
  • ELY has traded 80.83580000000000609361450187861919403076171875 options contracts today.
  • ELY is making at least a new 3-day high.
  • ELY has a PE ratio of 144.
  • ELY is mentioned 1.74 times per day on StockTwits.
  • ELY has not yet been mentioned on StockTwits today.
  • ELY is currently in the upper 20% of its 1-year range.
  • ELY is in the upper 35% of its 20-day range.
  • ELY is in the upper 45% of its 5-day range.
  • ELY is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on ELY:

Callaway Golf Company, together with its subsidiaries, designs, manufactures, and sells golf clubs and balls. It offers drivers, fairway woods, hybrids, irons, wedges, and putters. The stock currently has a dividend yield of 0.4%. ELY has a PE ratio of 144. Currently there are 2 analysts that rate Callaway Golf a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Callaway Golf has been 594,300 shares per day over the past 30 days. Callaway has a market cap of $907.3 million and is part of the consumer goods sector and consumer durables industry. The stock has a beta of 1.14 and a short float of 3.3% with 3.22 days to cover. Shares are up 31% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Callaway Golf as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:

  • ELY's revenue growth has slightly outpaced the industry average of 1.3%. Since the same quarter one year prior, revenues slightly increased by 4.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • ELY's debt-to-equity ratio is very low at 0.06 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.26, which illustrates the ability to avoid short-term cash problems.
  • CALLAWAY GOLF CO has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CALLAWAY GOLF CO turned its bottom line around by earning $0.10 versus -$0.38 in the prior year. This year, the market expects an improvement in earnings ($0.15 versus $0.10).
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Leisure Equipment & Products industry and the overall market, CALLAWAY GOLF CO's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to $61.06 million or 12.37% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

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